Astera Labs (NASDAQ:ALAB) Shares Gap Up - What's Next?

Key Points

• Astera Labs (NASDAQ:ALAB) experienced a significant gap up in share price, opening at $225.44 after closing at $214.49, with a last trading price of $218.82.
• Analysts have issued multiple upgrades on Astera Labs, with targets ranging from $155.00 to $215.00, reflecting increased confidence in the stock after a strong quarterly earnings report.
• Insiders have recently sold over 1.8 million shares of the company, suggesting caution as the stock sees active trading from institutional investors, who own approximately 60.47% of the company.

Astera Labs, Inc. (NASDAQ:ALAB - Get Free Report) gapped up before the market opened on Wednesday . The stock had previously closed at $214.49, but opened at $225.44. Astera Labs shares last traded at $218.82, with a volume of 1,505,387 shares changing hands.

Analysts Set New Price Targets

A number of analysts have weighed in on ALAB shares. CICC Research started coverage on shares of Astera Labs in a research note on Friday, August 29th. They set an "outperform" rating and a $190.00 price objective for the company. Morgan Stanley lifted their price objective on Astera Labs from $155.00 to $200.00 and gave the company an "overweight" rating in a research report on Friday, August 29th. Barclays reissued an "overweight" rating and issued a $155.00 target price (up from $75.00) on shares of Astera Labs in a report on Thursday, August 7th. Evercore ISI increased their price objective on shares of Astera Labs from $104.00 to $215.00 and gave the stock an "outperform" rating in a research note on Wednesday, August 6th. Finally, Wall Street Zen upgraded shares of Astera Labs from a "hold" rating to a "buy" rating in a research report on Saturday, August 16th. One research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $142.00.

Astera Labs Stock Performance

The company has a market capitalization of $37.92 billion, a P/E ratio of 407.20, a P/E/G ratio of 5.48 and a beta of 1.48. The firm's fifty day moving average is $146.67 and its 200 day moving average is $100.71.

Astera Labs (NASDAQ:ALAB - Get Free Report) last issued its quarterly earnings results on Tuesday, August 5th. The company reported $0.44 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.33 by $0.11. Astera Labs had a return on equity of 9.53% and a net margin of 16.54%.The firm had revenue of $191.93 million during the quarter, compared to analyst estimates of $172.46 million. During the same period last year, the company earned $0.13 EPS. Astera Labs's quarterly revenue was up 149.5% compared to the same quarter last year. Astera Labs has set its Q3 2025 guidance at 0.380-0.390 EPS. On average, analysts forecast that Astera Labs, Inc. will post 0.34 EPS for the current year.

Insiders Place Their Bets

In related news, CEO Jitendra Mohan sold 152,517 shares of the business's stock in a transaction on Thursday, August 7th. The stock was sold at an average price of $170.33, for a total transaction of $25,978,220.61. Following the completion of the transaction, the chief executive officer owned 450,001 shares in the company, valued at $76,648,670.33. The trade was a 25.31% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, COO Sanjay Gajendra sold 280,000 shares of the company's stock in a transaction on Thursday, August 7th. The stock was sold at an average price of $170.02, for a total value of $47,605,600.00. Following the completion of the sale, the chief operating officer owned 5,525,545 shares of the company's stock, valued at $939,453,160.90. This represents a 4.82% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 1,832,489 shares of company stock worth $264,172,396 in the last 90 days. 12.50% of the stock is owned by insiders.

Hedge Funds Weigh In On Astera Labs

A number of institutional investors have recently bought and sold shares of the business. Osaic Holdings Inc. lifted its position in Astera Labs by 208.0% during the second quarter. Osaic Holdings Inc. now owns 60,787 shares of the company's stock valued at $5,496,000 after purchasing an additional 41,051 shares during the period. China Universal Asset Management Co. Ltd. raised its position in Astera Labs by 175.7% during the second quarter. China Universal Asset Management Co. Ltd. now owns 10,200 shares of the company's stock valued at $922,000 after acquiring an additional 6,500 shares in the last quarter. Munro Partners acquired a new position in Astera Labs in the second quarter valued at approximately $2,355,000. Thrivent Financial for Lutherans purchased a new stake in Astera Labs in the 2nd quarter worth approximately $592,000. Finally, Marex Group plc acquired a new stake in shares of Astera Labs during the 2nd quarter worth approximately $2,197,000. 60.47% of the stock is owned by hedge funds and other institutional investors.

About Astera Labs

Astera Labs, Inc designs, manufactures, and sells semiconductor-based connectivity solutions for cloud and AI infrastructure. Its Intelligent Connectivity Platform is comprised of a portfolio of data, network, and memory connectivity products, which are built on a unifying software-defined architecture that enables customers to deploy and operate high performance cloud and AI infrastructure at scale.

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